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FAIRCHILD COMMENTS ON PROPOSED INITIAL PUBLIC OFFERING BY MEMBER OF FAIRCHILD GROUP

 FAIRCHILD COMMENTS ON PROPOSED INITIAL PUBLIC OFFERING
 BY MEMBER OF FAIRCHILD GROUP
 CHANTILLY, Va., April 21 /PRNewswire/ -- The Fairchild Corporation (NYSE: FA) commented today on the recapitalization plan of Rex-PT Holdings Inc. and its subsidiary, Rexnord Corporation. Last week, Rexnord disclosed plans, and filed registration statements with the SEC, for an initial public offering of 8 million shares of common stock (to trade on the NYSE) and $150 million of senior notes due 2002, and a plan to increase its senior bank facility. The proceeds would be used to retire $250 million of its high interest debt and $78 million of its preferred stock.
 Fairchild is the largest stockholder of Rexnord. Under the recapitalization plan, Fairchild would exchange its Rexnord preferred stock at $26 per share for Rexnord common stock valued at the public offering price, eliminating the remainder of the Rexnord preferred stock. Immediately thereafter, Fairchild would exercise its option to purchase from an unaffiliated party 36 percent of Rexnord's now outstanding common stock. It is projected that Fairchild will own approximately 45 percent of Rexnord's common stock outstanding after consummation of the recapitalization.
 After completion, Rexnord's debt to equity ratio will be substantially improved and its common stock will have a readily ascertainable market value.
 Jeffrey J. Steiner, chairman and chief executive officer of The Fairchild Corporation, stated: "We are pleased with the Rexnord recapitalization plan, which is designed to increase stockholders' equity, reduce indebtedness and interest expense, eliminate all outstanding classes of preferred stock and related dividend requirements and improve operating and financial flexibility. This plan will also give Fairchild added financial flexibility."
 Rexnord Corporation is a leading worldwide manufacturer and supplier of power transmission components and related products. The Fairchild Corporation is a leading supplier of aerospace and industrial products and communications services.
 -0- 4/21/92
 /CONTACT: John D. Jackson of Fairchild, 703-478-5872/
 (FA) CO: Fairchild Corporation; Rexnord Corporation ST: Virginia IN: SU: OFR


TS -- NY051 -- 0537 04/21/92 10:50 EDT
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Publication:PR Newswire
Date:Apr 21, 1992
Words:328
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